Valoren Number
Candlefocus EditorValoren Number is a unique code structure, consisting of 8 characters which is allocated to each individual security. The first 3 characters indicate the issuer identification, the fourth digit indicates the currency and the last 4 characters represent the issue. The full number is required for identification, hence brokers and traders always require the Valoren number to identify the shares of a security when trading.
Valoren numbers are allocated individually to each security listed on the Swiss Exchange, and they are used in the settlement and order processing of Swiss securities. All trades done on the Swiss Exchange require the Valoren number in order to facilitate settlement of the trades. This ensures that the shares are properly and accurately tracked and also helps in providing accurate market data to the investors and brokerage firms.
Valoren numbers also provide a great deal of efficiency to the trading and settlement systems in the Swiss markets. As the Valoren number is used to uniquely identify securities on the Swiss Exchange, it eliminates any ambiguity that might arise due to the use of multiple names, similar sounding company names or stock symbols. The Valoren number also helps reduce the risk of error when trading or settling transactions.
In addition, Valoren numbers are also used to identify securities traded on other European exchanges that are affiliated with SIX Exchange Information (SIX). These include exchanges in Austria, Sweden, Germany and France. Valoren numbers are also used for international trades with other traders that do not use the same name for the security. Valoren numbers have become very important in the Swiss financial markets. They provide a standard way to accurately track and identify securities in a cost-effective and efficient way. As a result, they are used more and more frequently in daily trading and settlement processes. With their unique identifiers, securities can be accurately identified and tracked, ensuring that the transactions settle accurately and in a timely manner.